Between 2,000 and 4,000 jobs are likely to be lost within the mining industry, including contractors and affiliates, if nothing concrete is done to reverse the trend of a declining of gold price.

“This is not a threat, this is not blackmail -- it is call for all of us who have stake in the industry to work together openly and honestly to save the situation,” Dr. Toni Aubynn, the Chief Executive Officer of Chamber of Mines, has said.

“Gold price, which peaked about US$1,800 in 2012, witnessed a dramatic fall to less than US$1,200 in June this year, representing decline of about 30% and the worse fall in 30 years -- even though the price seems to hover around US$1,250 and US$1,320, pundits do not expect a reversal of the trend in 2014,” he added.

At the 2013 National Safety and first-aid competition at Teberebie in Tarkwa, he pointed out that the mining companies have already witnessed a slump in gold production by 6% in the half year of 2013 -- self assessment of mining companies to the Ghana Revenue Authority (GRA) has shown a sharp decrease in mineral royalties and corporate tax payment.

Meanwhile, he said the mining industry continues to be faced with increasing input costs as well as fees and charges from Metropolitan, Municipal and District Assemblies (MMDAs).

He addressed a recent press statement attributed to Chiefs of the Wassa Fiase Traditional Council, which is purported to have given an ultimatum to mining companies operating in the area to pay their royalties or face the wrath of the chiefs.

He explained that the chiefs may well be aware that mining companies by law are required to pay 5% of their gross sale of the minerals to the state.

He said while the state may have an obligation to remit part of the royalties to chiefs -- with all due respect -- mining companies do not have such obligation to pay royalties to chiefs.

According to Dr. Aubynn, the mining sector continues to play an important role in Ghana’s development -- this is evident in the economic and social contributions the sector has made over the years.

“To put this in perspective, a recent report by the Monetary Policy Committee of the Bank of Ghana indicates that the contribution of gold to total merchandise export earnings from January to August this year alone -- in the first eight months of 2013 -- was US$3.4billion, representing 34.7% of the gross merchant export,” he said.

He indicated that at the end of 2012 the sector contributed over US$5billion, representing about 43% of gross merchandise exports, with significant benefits to stability of the cedi against other currencies and the country’s balance payment situation.